Bill Text: PA SB500 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Providing for investment activities in Iran; and imposing civil penalties.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-03-06 - Referred to STATE GOVERNMENT [SB500 Detail]

Download: Pennsylvania-2013-SB500-Introduced.html

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PRINTER'S NO. 585

 

THE GENERAL ASSEMBLY OF PENNSYLVANIA

 

SENATE BILL

No.

500

Session of 2013

 

 

 

INTRODUCED BY STACK, SCARNATI, TARTAGLIONE, WILLIAMS, TEPLITZ, FARNESE, GREENLEAF, WASHINGTON, SOLOBAY, RAFFERTY, ALLOWAY AND McILHINNEY, MARCH 6, 2013

 

 

REFERRED TO STATE GOVERNMENT, MARCH 6, 2013

 

 

 

AN ACT

 

Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, providing for investment activities in Iran; and
imposing civil penalties.

The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:

Section 1. Chapter 35 of Title 62 of the Pennsylvania
Consolidated Statutes is amended to read:

CHAPTER 35

[(RESERVED)]

IRAN FREE PROCUREMENT

Sec.

3501. Definitions.

3502. Engaging in investment activities.

3503. List of persons engaged in investment activities.

3504. Certification.

3505. Penalties for false certification.

3506. Expiration.

§ 3501. Definitions.

"Department." The Department of General Services of the
Commonwealth.

"Financial institution." The term as defined in section 14
of the Iran Sanctions Act of 1996 (Public Law 104-172, 50 U.S.C.
§ 1701).

"Iran." The government of Iran or an agency or
instrumentality of Iran.

"Person." An individual, organization, a financial
institution, sole proprietorship, association, corporation,
partnership, joint venture, limited partnership, limited
liability partnership, limited liability company or other entity
or business association that exists for the purpose of making a
profit or government entity that includes a multilateral
development institution as defined in section 1701 of the
International Financial Institutions Act (Public Law 95-118, 22
U.S.C. 262r).

§ 3502. Engaging in investment activities.

A person or financial institution engages in an investment
activity by doing any of the following:

(1) Providing goods or services worth at least
$20,000,000, including oil tankers or transporters and
liquefied natural gas tankers or transporters, to the energy
sector of Iran, or products used to construct or maintain
pipelines used to transport oil or liquefied natural gas for
the energy sector of Iran.

(2) Extending at least $1,000,000 in credit to a person
for 45 days or more if all of the following apply:

(i) The person uses the credit to provide goods or

services to the energy sector in Iran.

(ii) The person is identified on a list created

under section 3503 (relating to list of persons engaged
in investment activities).

§ 3503. List of persons engaged in investment activities.

(a) List.--The department shall develop a list of persons
whom the department determines are engaged in investment
activities in Iran as described in section 3502 (relating to
engaging in investment activities). The department shall make
its determination based on publicly available, credible
information. The department shall update the list every 180
days. Ninety days prior adding a person to the list, the
department shall do all of the following:

(1) Provide notice to the person of the department's
intention to add the person to the list. The notice shall
inform the person that inclusion on the list makes the person
ineligible to enter into a contract with a Commonwealth
entity for goods or services worth at least $1,000,000. The
notice shall specify that if the person ceases to engage in
investment activities in Iran, the person may regain
eligibility upon removal from the list.

(2) Provide the person an opportunity to comment in
writing to the department. The person shall maintain
eligibility if the person demonstrates no engagement in
investment activities in Iran.

(b) Ineligibility of persons on list.--A person identified
on a list under subsection (a) shall be ineligible to enter into
a contract with a Commonwealth entity for goods or services
worth at least $1,000,000.

(c) Fee.--The department may assess a fee to obtain a copy
of the list. Upon request, the department shall provide the list
free of charge to the General Assembly or a public entity.

(d) Retirement system investments.--A person who enters into
a contract with the Public School Employees' Retirement System
or the State Employees' Retirement System shall not be deemed a
person who engages in investment activities in Iran on the basis
of the person's investments with the retirement system.

(e) Exception.--On a case-by-case basis, the department may
permit a person engaging in investment activities in Iran to
enter a contract with a Commonwealth entity for goods or
services worth at least $1,000,000 if all of the following
apply:

(1) The investment activities in Iran were made before
and were not expanded after July 1, 2010.

(2) The person refrains from engaging in any future
investment activities in Iran.

(3) The department determines that the Commonwealth
entity has no other method of obtaining the goods or services
than entering into a contract with the person.

§ 3504. Certification.

The department shall make available a certification form
indicating that a person is not on the list under section
3503(a) (relating to list of persons engaged in investment
activities) and is eligible under this chapter to contract with
the Commonwealth. Prior to entering into a contract with a
Commonwealth entity, a person shall provide a certification form
to the Commonwealth entity, unless the person is exempt under
section 3503(e).

§ 3505. Penalties for false certification.

(a) Penalties.--Upon determination by the department that a
person has provided a false certification form to a Commonwealth
entity under section 3504 (relating to certification), the

person shall be subject to the following:

(1) A civil penalty in the amount of $250,000 or twice
the amount of the investment, whichever is greater. Only one
civil penalty may be imposed upon a person per investment.

(2) Termination of the existing contract with the
Commonwealth entity for a period of three years from the date
of the determination that the person submitted the false
certification. Following the three-year period, the
Commonwealth entity or the department may permanently
terminate the contract.

(b) Report of false certification.--The department shall
report to the Attorney General the name of the person who
submitted the false certification and the pertinent information
that led to the department's determination. No later than three
years after the department makes a determination under
subsection (a), the Attorney General shall determine whether to
bring a civil action against the person to collect the penalty
described in subsection (a). If a court determines the person
submitted a false certification, the person shall pay all
reasonable costs and fees incurred in the civil action.
Reasonable costs shall include the reasonable costs incurred by
the Commonwealth entity in investigating the authenticity of the
certification. Only one civil action against the person may be
brought for a false certification on a contract.

(c) No private right of action.--Nothing in this section may
be construed to create or authorize a private right of action.

§ 3506. Expiration.

The department shall have no obligations under this chapter
with respect to a company engaged in business activities in Iran
upon the occurrence of any of the following:

(1) Iran does not appear on the List of State Sponsors
of Terrorism.

(2) The President or Congress of the United States,
through legislation or executive order, declares that
mandatory divestment of the type provided for in this chapter
interferes with the conduct of United States foreign policy.

Section 2. This act shall take effect January 1, 2014, or
immediately, whichever is later.